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DP World mulls legal action over new Djibouti port 'violation'

Warning comes after opening of the first phase of the Chinese-built International Free Trade Zone, in violation of DP World's exclusive management rights

By Sam Bridge

Thu 12 Jul 2018 02:20 PM

DP World reiterated on Thursday that its concession agreement for the Doraleh Container Terminal (DTC) remains in force, warning that the government’s illegal seizure of the facility doesn’t give the right to any third party to violate the terms of the concession.

DP World's statement came in the wake of news reports on the opening of the first phase of the Chinese-built International Free Trade Zone, in violation of DP World's exclusive management rights.

A DP World Spokesperson said: "This is yet another clear example by the Djiboutian Government of violating its contractual obligations and the rights of foreign investors.”

The spokesperson warned that DP World reserves the right to take all available legal actions, including claims for damages against any third parties that interfere or otherwise violate its contractual rights.

In February, the Government of Djibouti unlawfully seized control of the terminal, forced DP World employees to leave the country and purported to terminate the concession agreement.

DP World said it has commenced an arbitration against the Government of Djibouti before the London Court of International Arbitration and is awaiting the outcome of this process.